Economics
U.S. Deficit to Surpass $1 Trillion Two Years Ahead of Estimates, CBO Says
- Tax-cut, spending stimulus boosting interest rates, prices
- CBO raises 2018 U.S. economic growth forecast to 3.3% vs 2%
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The U.S. budget deficit will surpass $1 trillion by 2020, two years sooner than previously estimated, as tax cuts and spending increases signed by President Donald Trump do little to boost long-term economic growth, according to the Congressional Budget Office.
Spending will exceed revenue by $804 billion in the fiscal year through September, jumping from a projected $563 billion shortfall forecast in June, the non-partisan arm of Congress said in a report Monday. In fiscal 2019, the deficit will reach $981 billion, compared with an earlier projection of $689 billion.